Watch Those Banks!

Just a quick note for this Monday morning. The banking sector appears to be breaking down again. If today's fall in the BKX holds or extends, we will have a new closing low on the index.

This failure is likely signalling that a new round of bad news is about to hit the wires. Will we see the problems with HELOC write-downs announced? Perhaps a significant bank failure? Who knows, but already the general market is not liking it. Both the SPX and NDX are down around a percent.

On a side note, it is also nice to see precious metals stabilizing, despite the $1.50 drop in oil. I'm watching hawkishly for an excuse to rebuild my silver holdings.